Goldman Sachs Group Inc. is in talks with Apple Inc. to offer financing for customers buying iPhones, watches or other gadgets, The Wall Street Journal reported, citing "people familiar with the matter."
Evercore ISI analyst John Pancari said Goldman's entry into this space could pose a "modest threat" to certain regional banks. He highlighted names including Fifth Third Bancorp, Regions Financial Corp., SunTrust Banks Inc. and Synovus Financial Corp., which have increased exposure to fintech companies and point-of-sale originators such as GreenSky LLC.
Pancari also wrote in a Feb. 7 report that the news could have a modest impact on EPS at regional bank Citizens Financial Group Inc. due to loss of business. Citizens Financial is currently Apple's sole loan provider for iPhone purchases.
